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Is Duke Realty Corporation's (NYSE:DRE) CEO Pay Justified?

Simply Wall St

Jim Connor has been the CEO of Duke Realty Corporation (NYSE:DRE) since 2016. This analysis aims first to contrast CEO compensation with other large companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Duke Realty

How Does Jim Connor's Compensation Compare With Similar Sized Companies?

Our data indicates that Duke Realty Corporation is worth US$12b, and total annual CEO compensation is US$6.9m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$846k. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).

A first glance this seems like a real positive for shareholders, since Jim Connor is paid less than the average total compensation paid by other large companies. Though positive, it's important we delve into the performance of the actual business.

You can see, below, how CEO compensation at Duke Realty has changed over time.

NYSE:DRE CEO Compensation, September 4th 2019

Is Duke Realty Corporation Growing?

Duke Realty Corporation has increased its earnings per share (EPS) by an average of 6.3% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 25%.

I think the revenue growth is good. And the modest growth in earnings per share isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. It could be important to check this free visual depiction of what analysts expect for the future.

Has Duke Realty Corporation Been A Good Investment?

With a total shareholder return of 33% over three years, Duke Realty Corporation shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

It looks like Duke Realty Corporation pays its CEO less than the average at large companies.

Jim Connor is paid less than what is normal at large companies, and but overall performance has left me uninspired. However I do not find the CEO compensation to be concerning. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Duke Realty (free visualization of insider trades).

If you want to buy a stock that is better than Duke Realty, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.